If your application doesn’t get accepted do u loose the holding deposit ?
I’m sure you would have been sent copies of the rules about holding deposits, or been prompted to read & accept them via Openrent when you paid it. What did they say?
The basics are that if you haven’t mislead or lied, if the Landlord rejects your application, you should get it back.
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@Stephanie22 there’s info about this on Openrent’s FAqs page, if you are truthful and dont withdraw the application yourself and have right to rent in the uk and co operate [so supply everything needed for referencing etc in good time] you should get the holding deposit back.
In more detail…
[google ‘Goodlord Retaining and returning holding deposits (under the Tenant Fees Act)’]
Under the Tenant Fees Act, holding deposits must be refunded. But there are four tightly defined exceptions where you’re legally allowed to keep the money. Here’s what you need to know:
1 - If the tenant withdraws
If the applicant changes their mind and pulls out before signing the tenancy agreement, you’re entitled to retain the deposit. If you’ve lost valuable time, the law recognises and supports that.
2 - If the tenant fails the right to rent check
You’re legally required to confirm that the tenant has the right to rent in the UK. If they don’t pass this check, you can’t proceed with the tenancy, and you’re within your rights to keep the deposit. This is because if the tenant doesn’t meet immigration requirements, the tenancy can’t legally go ahead.
3 - If the tenant provides false or misleading information
If the tenant gives you inaccurate details that affect your decision to let, such as overstating their income or hiding adverse credit, you can retain the deposit.
For instance, if they claim to earn £40,000 but referencing reveals it’s closer to £20,000, that’s a material misrepresentation.
4 - If the tenant doesn’t take reasonable steps to proceed
Tenants are expected to cooperate with the application process. If they drag their feet, ignore emails, fail to provide ID, or don’t sign the agreement within the 15-day deadline, you may retain the deposit. The key phrase here is “reasonable steps.” If you’ve chased them and they’ve gone silent, you’re not obliged to wait forever.
Hi @Stephanie22
We’ve got a guide here outlining how your holding deposit will be treated in different circumstances.